Do you have a monthly budget for your family finances written down on paper or on your computer? If you answered “YES” to this question you are way ahead of the average family in America. Most families don’t have a monthly budget period. The importance of having a recorded monthly budget can not be over rated. It serves as a commitment and a guide.
The monthly budget can be adjusted as income increases and decreases. The record-keeping is visible at a glance and can be easily viewed. This written record functions as a second opinion every time you want to spend a little money that is not a necessity. Contractual obligations like mortgage or rent, and auto or motorcycle loans are necessities in today’s world. You need a place to live and transportation is a must as well. Food, clothing, and utilities are also something that we rely on for minimal civilized standards.
The amount of money that we allocate towards the necessities of life (shelter, transportation, food, utilities, and clothing) is not surprisingly determined by our income. Making these initial allocations to your family budget is much easier and provides more decision making flexibility if you make $20,000.00 a month. When your income is $1,750.00 per month basic financial decisions become more difficult. You are limited in your housing choices. Transportation becomes a major monthly bill in most cases. If the task of building a family budget seems too difficult Kevin Smith can help. He has built hundreds of monthly budgets for families just like yours!
Regardless of your income, recording family expenses will help you. At the very least it gives you an expected amount of money to deposit into your savings account or investment portfolio. When things are tight knowing where every penny goes makes it easier to say “NO” to situations that may hurt your family financially. A boys or girls night out may cost your family $50.00 or $100.00 that is better spent on food or the electric bill. On the other hand, if entertainment is a category within your family budget and you have $80.00 set aside then go out with your friends. Knowing that you have the money to spend will allow you to have more fun and not worry about affording your night out.
Knowing your current financial condition is critical to living a financially fit life. Be honest with yourself and family. Not going out to dinner and saving $50.00 or $100.00 or $200.00 is much better than going out and having to struggle to pay your monthly bills. Understanding your financial condition by using a monthly budget will promote family stability and make your life easier. Contact Us Today for help setting up a monthly family budget.